US Existing Home Sales: Supply constraints contract closings - Wells Fargo

Analysts from Wells Fargo, explained that existing home sales fell 3.6% in December to a 5.57-million unit pace, as increasingly tight inventories stifled resales toward the end of 2017. 

Key Quotes: 

“December was the first time in five months the pace of existing sales moderated, with sales falling from November’s strong 5.78-million unit pace. The pace slowed for both single-family and condo sales, and in all four regions during December.”

“The supply of existing homes for sale fell to just 3.2 months, which is the tightest the resale market has been since the NAR began measuring the metric in 1999.”

“With December in the books, the preliminary data show resales came in totaling 5.51 million units in 2017. This marks the strongest year since 2006, though sales rose just 1.1 percent from the prior year. This past year’s small rise speaks to the difficulty facing the market.”

“Stronger job growth and low mortgage rates are boosting demand, but the dearth of inventory is driving prices higher and keeping many potential buyers on the sidelines.”